Determine the effect on the market of “watches”, by first showing the graph of demand and supply equilibrium, and how the 3 conditions affect the market of watches? Justify your points by proving it graphically. Current Equilibrium price of watches = $260 Quantity demanded against the equilibrium = 500 Condition 1: Price ceiling has been imposed by government = $200 Condition 2: Price floor has been set to = $200 Condition 3: If Price floor has been imposed by government of price = $300
Determine the effect on the market of “watches”, by first showing the graph of demand and supply equilibrium, and how the 3 conditions affect the market of watches? Justify your points by proving it graphically. Current Equilibrium price of watches = $260 Quantity demanded against the equilibrium = 500 Condition 1: Price ceiling has been imposed by government = $200 Condition 2: Price floor has been set to = $200 Condition 3: If Price floor has been imposed by government of price = $300
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 25P
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Question
Determine the effect on the market of “watches”, by first showing the graph of demand and supply equilibrium, and how the 3 conditions affect the market of watches? Justify your points by proving it graphically.
- Current
Equilibrium price of watches = $260 - Quantity demanded against the equilibrium = 500
- Condition 1:
Price ceiling has been imposed by government = $200 - Condition 2:
Price floor has been set to = $200 - Condition 3: If Price floor has been imposed by government of price = $300
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